Financial institutions Edit
An outsourcing risk assessment should consider the following:
- Strategic goals, objectives, and business needs of the financial institution.
- Ability to evaluate and oversee outsourcing relationships.
- Importance and criticality of the services to the financial institution.
- Defined requirements for the outsourced activity.
- Necessary controls and reporting processes.
- Contractual obligations and requirements for the service provider.
- Contingency plans, including availability of alternative service providers, costs and resources required to switch service providers.
- Ongoing assessment of outsourcing arrangements to evaluate consistency with strategic objectives and service provider performance.
- Regulatory requirements and guidance for the business lines affected and technologies used.